Analysis

The Coca-Cola Co Q1 2018 - results data

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In April, The Coca-Cola Co released its results for the first three months of 2018. The group saw its sales on an organic basis rise by 5% on the corresponding period last year, with volumes increasing by 3%. Here, just-drinks looks at the group's performance in the first quarter of 2018, in greater detail.

The Coca-Cola Co First Quarter 2018 - Sales by Region

Europe, Middle East & AfricaLatin AmericaNorth AmericaAsia-PacificBottling InvestmentsTotal
Q1 201716329262422120838369118
Q1 201818419982680121810517624

Source: Company results

The above chart comprises sales on a reported basis. Clearly, the repercussions from Coca-Cola's restructure of its bottling footprint are ongoing: The 16% fall in sales in reported terms was down to a "26% headwind" from the group's bottler refranchising programme, which was completed in the US towards the end of last year.

The group will be buoyed by the "improved trends" it says it saw "across the beverage industry overall" in the period. Note also the faster growth in value sales to volumes, due to Coca-Cola's "acceleration in smaller, immediate consumption packaging".

  • Europe, Middle East & Africa - Organic sales +8%

Despite raising prices in developed markets, healthy volumes in emerging and developing markets hampered price/mix in EMEA, which was down 1%. Across the region, Coca-Cola's unit case volumes increased by 4% thank predominantly to Turkey and South Africa. Volumes were down, however, in Nigeria and Western Europe.

  • Latin America - Organic sales +6%

The region posted a 6% lift in price/mix, as volumes inched up 1% in Latin America in the three months. Brazil, Argentina and Mexico all delivered mid-single-digit growth, while Peru and Chile were down in volume terms.

  • North America - Organic sales +1%

Tough year-prior comparisons along with the earlier Easter holiday pulled price/mix in North America down by 1%, with volumes increasing 2% in the region. Coke Zero Sugar had a good quarter, posting a double-digit volumes rise, while the group's deprioritisation of "lower-margin juice drink brands" resulted in a 2% dip in volumes for the juice, dairy and plant-based beverage stable. The group's sparkling water portfolio, led by Smartwater Sparkling and Dasani Sparkling, delivered "strong growth" in the region.

  • Asia Pacific - Organic sales +3%

Asia Pacific had to deal with similar issues in EMEA, with growth in China and India, led by Coca-Cola's CSD offerings, outpacing the developed markets of Japan and Australia. Price/mix in the region subsequently fell, by 2%, with volumes increasing 5%. South-East Asia was down by low single digits in volume terms.

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